Higher interest rates could benefit savers
The repo rate is the rate that the Reserve Bank charges on money that banks borrow from it through the refinancing system and the higher the repo rate, the higher interest rate the banks pay and this of course, is passed on to consumers.
Thus, there is no benefit for banks when interest rates rise. Higher interest rates are intended to discourage borrowing and encourage saving, which usually results in lower inflation because demand for goods and services declines as people buy less on credit, and supply increases if additional savings are used productively in the economy.
Adjustable rate mortgage can save you money
When buying a home, it is best to try and get an adjustable rate mortgage for lower payments and less paid in interest while you live there.
According to the National Association of Realtors, most people move every 5 – 7 years, which means that if you are buying a house now, chances are you could be moving in as little as 5 years from now.